Neogen Sells Genomics Business with $90M Sales to Zoetis for $160M
Neogen will sell its global Genomics business to Zoetis for $160M, which generated $90M in FY2025 sales, under a deal expected to close by end of its fiscal 2027 first half. Net proceeds will be used primarily to reduce debt, as part of a strategic portfolio simplification.
1. Deal Overview
Neogen entered a definitive agreement to sell its global Genomics business to Zoetis for $160 million, subject to customary closing adjustments and regulatory approval. The transaction is slated to close by the end of the first half of Neogen’s 2027 fiscal year.
2. Financial Impact
The Genomics unit generated approximately $90 million in sales during fiscal 2025, and net proceeds from the disposal are earmarked primarily for debt reduction, supporting the company’s de-leveraging objectives.
3. Strategic Rationale
This divestiture is part of Neogen’s strategic portfolio review aimed at simplifying operations, focusing on core food safety and animal health markets, and enhancing profitability through accelerated de-leveraging.
4. Business Profile
GeneSeek’s offerings include the Igenity and GGP portfolios, leveraged by the Encompass data integration platform to deliver genomic insights for livestock and companion animals, a business positioned to thrive under Zoetis’ ownership.